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HomeMy WebLinkAboutResolutions - 2011.02.17 - 10592FINANCE COMMITTEE MISCELLANEOUS RESOLUTION # 11041 February 17, 2011 BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON IN RE: FACILITIES MANAGEMENT — JAIL CHILLER REPLACEMENT PROJECT TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS the chillers at the Jail are 24 years old and have exceeded their expected useful life; and WHEREAS during recent preventative maintenance work, metal fragments were found in the Jail chiller's oil and filters, which is an indication that critical problems exist with the bearing, increasing the unreliability of the unit; and WHEREAS Facilities Management recommends the full replacement of the chiller; and WHEREAS the replacement chiller will be much more energy efficient, require less on- going maintenance, use the latest environmentally friendly refrigerant, and may qualify for approximately $30,000 in DTE rebates; and WHEREAS the estimated cost for the Jail Chiller Replacement Project is $600,000 which includes $8,000 for engineering and bid documents, $425,000 for the new chiller, $44,000 for installation, $40,000 for temporary chiller during construction (as required), and $83,000 for contingency; and WHEREAS the new chiller will be bid out by Purchasing; and WHEREAS the installation for the chiller will be provided by in-house staff and contracted vendors; and WHEREAS funding in the amount of $600,000 for the project is available for transfer from the FY 2011 Capital Improvement Program/Building Fund (#40100) to the Project Work Order Fund (#40400) for the Jail Chiller Replacement Project. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners authorizes the Jail Chiller Replacement Project in the amount of $600,000. BE IT FURTHER RESOLVED that the Board of Commissioners authorizes transfer of funding in the amount of $600,000 from the Capital Improvement Program/Building Improvement Fund (#40100) to the Project Work Order Fund (#40400) for the Jail Chiller Replacement Project (100000001466) as detailed below: Building Improvement Fund #40100 1040101-148020-788001-40400Transfer Out ($ 600,000) Project Work Order Fund #40400 1040101-148020-695500-40100Transfer In $ 600,000 $ -0- Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Woodward absent. Memo To: jack Smith, Manager — Purchasing From: Art Holdsworth, Director Facilities Management Date: 2/16/2011 Re: Jail Chiller Finalist Selection We've summarized in the attached chart our selection of McQuay to replace the two, chillers at the Jail. McQuay offers a shorter lead time (4 vs. 15 weeks), while York offers a more energy-efficient unit ($120,000 cost avoidance over a 20-year expected life). The longer lead time from York will cost $25,000 - $30,000 in additional up-front costs, due to the need for a temporary chiller. Both units, however, are much more energy efficient than the current chillers (20-30% more). Because of the many variables and long time period involved, it would be difficult to guarantee that York would actually achieve its projected energy savings. Thus, we recommend accepting the McQuay bid, primarily due to the reduced immediate costs. Any questions can be directed to me at 248-858-0160, Holdswortha(&,oakqov.com . Thank-you. • Page 1 Overall Point Scale by Category: 2 Very Good 5 Very Poor 1 4 Average 3 001713 Proposal Evaluation Scoring Matrix Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Avg. Point Score Weighted Avg. - Vendor Rating Rating Rating Rating Rating Rating Rating Rating John Ostrander 2.25 3.00 3.25 2.00 _ - 2.00 3.75 4.00 3.75 3.00 3.03 Johnson Controls 5.00 4.50 5.00 4.25 4.25 3.75 5.00 4.00 4.47 4.54 McQuay International 4.00 4.75 4.00 5.00 5.00 4.00 4.00 4.25 4.38 4.15 McQuay International - Alt. 5.00 5.00 3.75 5.00 5.00 5.00 4.00 4.25 4.63 4.75 Category 1 - Base Bid - 35% Category 2 - Engineering, site supv., start-up - 5% Category 3 - Training - 5% Category 4 - Alternate #1 - 5% Category 5 - Alternate #2 - 5% Category 6 - Schedule, including lead time, delivery, and assembly - 25% Category 7 - Economic Analysis - 15% Category 8 - Warranty - 5% Category _ _._ Category Components: 1 Equipment price for 2 chillers 2 Engineering work by manufacturer needed to fabricate the chillers, assembly!disassembly at factory, delivery to site, reassembly on site, start-up and testing on site 3 Training of County staff in the operation of the chillers 4 Extended warranty (4 additional years) on labor and material for chillers 5 Extended warranty (4 additional years) on parts for compressor assemblies in the chillers 6 Delivery schedule (Note: There is no significant cost avoidance associated with temporary chiller deployment among the base bids) 7 Calculations indicate total cost of operating the equipment 1.‘krtii; Comments: Project Cost Analysis Johnson Controls First cost=6276,304; Operating cost=$34,170 per year x 20 year lie expecOncy.$683,400 15 week lead time may result in need for temporary chiller ($30,000 max. ) McQuay Intl - Alt. First cost=$276,800; Operating cost=$40,161 per year x 20 year lie expectancy=$803,220 4 week lead time will eliminate the need for temporary chiller Resolution #11041 February 17, 2011 Moved by Middleton supported by Greimel the resolution be adopted. AYES: Dwyer, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, Runestad, Scott, Taub, Weipert, Zack, Bosnic, Covey, Crawford. (24) NAYS: None. (0) A sufficient majority having voted in favor, the resolution was adopted. Y APPROVE THS-F ACTIM3 PURSUANT TO lg.: STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Bill Bullard Jr., Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on February 17, 2011, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 17th day of February, 2011. Bill Bullard Jr., Oakland County